Phxcore Strategy.Pdf

CITY OF PHOENIX MAY 2018 SECTION 1: GETTING STARTED ------1

What is an Innovation District? ------1

An Innovation District in Phoenix ------2

SECTION 2: THE HISTORY OF PHOENIX’S CORE ------3

Post World War II: Phoenix’s Population Explosion ------3

1970 2000:- Ups and Downs and Ups ------3 Contents 2000 2012:- Transportation, Education, Recession------4 2012 Today:- Downtown Renaissance------4

SECTION 3: PHX CORE ------7

What Does It Take to Make an Innovation District Work? - - - - - 7

Starting Off Strong: District Anchors ------9

The District Boundaries------12

Phoenix Biomedical Campus Map------13

Phoenix Map------14

What’s in a Name? PHX Core ------15

SECTION 4: FINDINGS - WHAT WE LEARNED ABOUT PHX CORE ------16

Residents and Employees ------16

Education and Industry------17

General Demographics ------19

Quality of Place------19

SECTION 5: STRATEGIES FOR SUCCESS ------21

Build Expertise ------21

Facilitate Interaction------22

Support Entrepreneurship------23

Enhance Place------24

Cultivate Diversity ------25

ACKNOWLEDGEMENTS------26 In today’s world, innovation is happening at an unprecedented pace. That means cities have to do more than provide services and balance budgets to keep up. Local leaders have to think creatively and work together to solve the greatest challenges facing our communities. In Phoenix, our task, every day, is to build an economy that works for everyone—an economy rooted in innovation that creates new opportunity. That’s what motivated us to dive in head first to this initiative.

Many fellow mayors across the U.S. joined together in a conversation about innovation districts to learn more about what they are, how they work, and the impact they can have on an emerging creative ecosystem. Not only do I believe Phoenix has what it takes to build and foster an innovation district—but I’m confident we have the right ingredients to compete and lead.

More than a year of hard work, long meetings and data collection went into producing this report and the vision for PHX Core. Committee members spoke to leaders of other innovation districts, toured creative office spaces and university research labs, and brought to the table their perspectives, as well as those of their peers and employees.

I owe a special thanks to those individuals for their dedication to making Phoenix’s urban core the best destination for innovators, creatives and entrepreneurs, and I’m confident they will continue to serve as ambassadors for the area in the years to come. I’m also grateful for strong leaders in the City who helped shape this process—to ensure it was inclusive, focused on data, and outcome -driven. To Community and Economic Development Director Christine Mackay and the team in her department, and to the policy team in my office, thank you for seeing this through.

There are great opportunities and challenges ahead for our City, and in many ways those will be concentrated in PHX Core. But I’ve never been more optimistic about our future. If we continue to collaborate across industries and sectors, if we continue to cultivate the diversity that makes our community so rich, if we continue to lift entrepreneurs…I have no doubt PHX Core will be a resounding success. And it will be up to all of us to shout those successes from the rooftops.

Mayor Greg Stanton During his time in office, Mayor Greg Stanton has made the case for why the city needed to Section 1: create an economy that works for more Phoenix families. His work to diversify the city’s economy Getting Started focused on trade and innovation—and he offered a road map for how to do it. Many of his ideas, including building international relationships to increase exports, investing in mass transit growth WHAT IS AN and creating new higher education opportunities INNOVATION DISTRICT? in Phoenix’s core were initiatives that aren’t typically driven by local governments. Stanton, In May 2014, the Metropolitan Policy Program along with mayors across the country, seized at Brookings Institution released a report a moment in which cities are leveraging their titled “The Rise of Innovation Districts: A New assets to transform local and regional economies. Geography of Innovation in America.” The report In Phoenix, that includes a strategy to build an investigated the “shift occurring in the spatial innovation district. geography of innovation,” or the trend for clusters of innovative people and companies to locate The Time is Now in urban areas. The authors defined innovation Globally, the economy is becoming increasingly districts as “geographic areas where leading -edge reliant on innovation: Brookings notes that anchor institutions and companies cluster and approximately 20 percent of all U.S. jobs are in connect with startups, business incubators, and STEM fields, a share that has doubled since the accelerators. They are also physically compact, Industrial Revolution. And metros across the U.S. transit accessible,- and technically -wired and offer and abroad are embracing the emergence of mixed-use housing, office and retail.” dense hubs of innovative economic activity.

Brookings recognized the strength of mayors and The rapidly changing role of cities has encouraged the ability for cities to get important economic mayors to take the lead on innovation district initiatives accomplished. Since the release of its strategies. Where local governments could 2014 report, Brookings has worked with the U.S. once count on federal and state governments Conference of Mayors and more than a dozen to help guide economic initiatives, mayors have cities—including Phoenix—to support emerging increasingly stepped into nontraditional roles to innovation districts and help accelerate them. support those initiatives on their own. This shift

Gould Evans 521 studio

1 has left city leaders “to design, finance, and deliver AN INNOVATION multisector economic development initiatives that were once seen as the responsibility of higher DISTRICT IN PHOENIX levels of government.” This is especially true in In April 2016, Stanton announced that the City Phoenix, where Stanton directed the city to focus would develop a strategy for its own emerging on large -scale economic initiatives including trade innovation district in the city’s urban core. and transportation. The goal: “to designate, promote and guide a Now, Phoenix is helping shape this conversation geographic area where research -oriented anchor on innovation districts. The combination of institutions, high -growth companies, and creative economic, physical and networking assets in and tech startups can cluster together to maximize Phoenix’s urban core demand swift attention and innovation and employment potential.” a dedicated strategy to ensure that the area grows in the right direction. Local leaders understood Stanton wasn’t alone in his desire to explore the role an innovation district strategy can play in the makings of a successful innovation district. increasing the city’s competitiveness, especially as That same year, the U.S. Conference of Mayors so many other urban metros are doing the same. convened a working group on innovation and placemaking to study trends and best practices. The “Turn to Urban” In partnership with Brookings and the Project Dense, urban environments have become hotbeds for Public Spaces, the working group members for emerging innovation districts—a trend evident dissected the popularity of innovation districts and in many U.S. cities. Not long ago, research strategies for helping them succeed. institutions and creative -sector companies chose to locate in wide -open campuses and research Since 2016, the City of Phoenix Community and parks in the suburbs. But today’s innovation Economic Development Department has worked districts look much different. with a council -appointed steering committee through a public process to assess Phoenix’s Many cities are focusing on innovative hubs innovation assets, strengths and weaknesses, and of activity sprouting in downtowns, forgotten seaports and waterfronts, and underutilized to chart a course for the future of the designated warehouse districts—often near or within with area. The following report is an account of the city’s central business district. Innovative what the steering committee learned and its companies want to be close to the center of recommendations for future success. commerce and life.

But even in these more urban environments, the presence of large anchor institutions matters. Anchors may be research institutes, universities, or large high tech- headquarters. They provide the backbone infrastructure that entrepreneurs build on—directly or indirectly—to create The exciting thing about the economic value. innovation district in Phoenix is For the last few years, Phoenix has benefited from “that we have the opportunity the result of this shifting preference for urban to define it, and define it for settings. Downtown Phoenix may be the only ourselves moving forward.” place in the state with the combination of enough density, mass transportation options, research JI MI CHOI, OFFICE OF KNOWLEDGE ENTERPRISE DEVELOPMENT, ARIZONA STATE UNIVERSITY institutions, and variety of entrepreneurs and innovators to fully maximize the advantages of the “turn to urban.”

2 At the end of the war, downtown was the city’s central business and shopping district. But Section 2: with the rising preference for suburban living, the construction of major freeways, and the The History of decentralization of big companies, many of Phoenix’s strongest economic assets began Phoenix’s Core to scatter around the region—and downtown struggled as a result. The late 1950s brought a wave of skyscraper construction, but rather than building in the central business district, city leaders To better understand the activity taking place in permitted most to be built along Central Avenue— the city’s urban core, it’s important to reflect on away from downtown. Phoenix’s history and the trends that shaped its geography, industry and workforce. Phoenix is 1970 2000:- UPS AND unlike any other big American city—because of DOWNS AND UPS both its history and youth. Today, Arizona’s capital In the 1970s, many cities across America dealt with is the fifth most populous city in the country, and the challenges and destruction of downtowns, it is the fastest -growing city in the nation. and Phoenix, did too. In attempts to restore downtown’s economic viability and vibrancy, city POST WORLD WAR II: PHOENIX’S officials invested in cultural assets including a Civic POPULATION EXPLOSION Plaza and Symphony Hall. A few high rise- buildings and hotels followed, but many historic buildings In 1940, Phoenix was home to just more than 65,000 residents, but over the next decade, were lost in the process. Several businesses chose that number would grow to more than 100,000. to build or locate north of downtown in the newly The war shifted Phoenix’s economy away from designated “Central Corridor.” But despite the agriculture toward manufacturing and defense, and changes, downtown remained the center of local the city became home to the training grounds for and county government operations, and home to thousands of troops. When the war ended, many the state’s largest financial institutions. servicemen moved their families back to the city of their training in search of jobs in new high tech- The 1980s and 90s proved to be an era of industries. Companies relocated to the area, too, contradictions for downtown Phoenix. It brought following the fast -growing labor pool. Motorola, significant new development, but also a recession. Intel and McDonnell Douglas all set up shop in the The city and voters made forward thinking- Valley of the Sun. The advent of air conditioning investments in theaters and cultural amenities, spurred even more growth and construction. but also short -sighted investments in low density-

3 The Department coworking space shopping centers. Many businesses moved away ASU and the City of Phoenix partnered on from downtown to midtown or even the further - another transformative plan just two years north Biltmore neighborhood, but many artists and later to expand the university with a downtown urban revivalists- deliberately moved back to the campus. A bond initiative passed by a 2 1- margin, urban core. providing $223 million in funding for the new campus, located in the heart of downtown. That A new arena for the Phoenix Suns opened in 1992, same year, the new campus started classes for and a ballpark for a new Major League Baseball more than 2,500 students. team followed in 1998, just next door. Both encouraged new development to follow. In the late 2000s, city leaders revisited zoning and form codes to officially return the focus to 2000 2012:- TRANSPORTATION, strengthening downtown. However, the effects EDUCATION, RECESSION of 2008’s Great Recession were felt in every corner of the state—only Nevada lost a greater In 2000, the voters took a leap of faith and share of its workers during the downturn than approved a light rail system that would ultimately Arizona. Between 2008 and 2010, unemployment make downtown more accessible to everyone. in Greater Phoenix went up by nearly 7 percent. Since the rail opened in 2008, transit has taken Naturally, development slowed significantly in hold in Phoenix. Light rail ridership shattered Phoenix as well. expectations, and today 15.5 million people ride each year—with 1 million boarding at downtown’s 2012 TODAY:- DOWNTOWN Central Station. Though, the Great Recession shook Phoenix and the nation just as light rail RENAISSANCE opened, delaying much of the development and A Higher Education Nucleus investment city leaders anticipated would take The introduction of higher education institutions place along the new line. to downtown Phoenix has been transformative. In 2004, a city plan to develop 30 -acres of The constant presence of students, research and downtown land into an urban medical and discovery was the infusion Phoenix needed. bioscience campus became a reality through a ASU continues to move colleges and degree strategic partnership between the City, Arizona programs to its downtown campus. The city State University, the University of Arizona, and invested $12 million to build a new law school the Arizona Board of Regents. The new campus for ASU—which opened and started classes in became home to the U of A’s second college of 2016—and another $13.5 million to build a home for medicine a short time later. the Thunderbird School of Global Management.

Within 7 years, there’s a downtown campus. And a few years later we’re at 13,000 students, heading toward 20,000 students downtown. That’s just evidence“ of how quickly ideas can move in a place that’s not constricted by convention.”

STEVEN TEPPER, ASU HERBERGER INSTITUTE FOR DESIGN AND THE ARTS

4 Graduate arts students relocated to a historic Recently, more than 1,500 residential units building in the Warehouse District, now known as have opened in the central city—and there are Grant Street Studios. another 8,300 units under construction or in pre -development at the time of this report’s U of A and NAU also have grown their course offerings downtown on the Phoenix Biomedical publication. And since 2012, five new hotels joined Campus. downtown’s lodging inventory. Most of these assets are located near the light rail line. Investing in bringing new higher education opportunities to downtown has paid dividends. The Tech Wave There were once zero students in downtown The confluence of economic activity brought Phoenix—and today it’s home to more than 13,000. new life—and people—to downtown Phoenix. The influx in the number of students downtown And many of those people brought with them an daily has been consequential, and evidence is entrepreneurial spirit that has turned the area into seen in the increase in bars, restaurants, coffee a destination for startups and entrepreneurs. shops, and residential options that cater to students and more. Several commercial developers have renovated Doubling Down on Mass Transit outdated properties to better accommodate creative -sector companies looking for more open - In 2014, voters recommitted to their initial floor office space. Many welcomed new ground investment and supported a new 35 -year, $31 billion transportation plan that will expand services floor tenants such as coffee shops, pubs, and and extend the light rail track—including through coworking spaces. From 2012 to 2017, the number the historic Warehouse District into south Phoenix. of tech companies and startups in the city’s central core quadrupled. In 2017, Phoenix jumped Light rail did more than provide new two spots—from ten to eight—on the Kauffman transportation options for the people of Phoenix, Foundation’s Startup Activity Index. it created an unprecedented economic boost. It supported ASU’s expansion downtown, Many of those companies have chosen to relocate connecting students from its Tempe campus. from elsewhere in the metro area, citing proximity The rail now brings millions of visitors from Sky to other like -minded companies, amenities within Harbor International Airport to downtown hotels walking distance, and the “urban feel” as reasons and the convention center. And that connectivity for the move. In some cases, Silicon Valley -based now makes hosting large -scale events—such as companies have expanded office locations or the Super Bowl and NCAA Final Four—not only established second headquarters in Phoenix. possible, but convenient. They cite the sustainable cost of living and doing Perhaps most importantly, light rail gave business, the large talent pool, and the tightly -knit developers the confidence they needed to invest start -up network. in big projects downtown again: More than $10 billion of capital investments have been made Immediately south of downtown is Phoenix’s within a quarter -mile of the tracks in the city historic Warehouse District, which has been of Phoenix, proving the project’s economic another draw to tech companies. The large - potential. One such project, the $500 million, 1.2 - footprint buildings, historic architecture, and raw acre CityScape, brought new restaurants, retail, feel of the area offers a blank canvas for creating a hotel and high -rise apartments to the middle one-of-a-kind office spaces. For these reasons, of downtown. An adjacent development is now the Warehouse District has also become home to underway, which will bring downtown its first a number of creative marketing and architecture grocery store in addition to more residential units firms, art galleries and event venues. and creative office space.

5 Warehouse District: Before and After

Galvanize, originally the General Sales Co. Wholesale Grocery Warehouse, 1941

R&R Partners, originally the Ong Yut Geong Wholesale Market, 1930

Events on Jackson, originally a fruit and vegetable storage warehouse, 1931

RELICS REBORN: The Transformation of Phoenix’s Warehouse District The Phoenix Warehouse District, rich with history and culture, has become a hotbed for startups, tech companies, event venues, and creative firms. In the early 1900s, the area served as the commercial heart of Old Phoenix—filled with distribution centers and produce sheds constructed along the Union Pacific Railroad tracks. Today, many of the Warehouse District’s original buildings are still standing—and visionary entrepreneurs have breathed new life and character into the spaces. As the area continues to redevelop, it will serve as a critical piece of PHX Core. 6 Section 3:

Core Spotlight: PHX Core DOUBLEDUTCH EXPANSION To initiate Phoenix’s own innovation district, Stanton and the City Council created a steering committee deliberately made up of entrepreneurs, educators, brokers, and stakeholders— In 2016, San Francisco-based tech the people who are taking action on a daily basis to drive new company DoubleDutch chose innovation. downtown Phoenix as the location for its first branch office. After a City leaders and the steering committee studied Phoenix’s little more than a year of operations strongest economic assets, evaluated best practices in in Phoenix, the company decided innovation districts around the country, and identified anchor institutions in the downtown area to ultimately develop a plan to invest more and create new jobs for the district’s future. in the market. They hired software engineers in addition to the existing customer support team. WHAT DOES IT TAKE TO MAKE AN INNOVATION DISTRICT WORK? “We’re at a point now where we have The steering committee identified seven focus areas that help to scale our engineering department drive success in innovation districts across the country. and bring on a lot of new talent. There’s a great culture and startup For economic viability and success, Phoenix’s innovation district scene in Phoenix. To me, as a CTO, needs to focus on and grow the following: when I see there is already a strong • Critical Mass cultural team there, there is a basis to • Mixture of Industries grow a strong part of DoubleDutch. • Tightly -Networked Ecosystem [In San Francisco], we miss out on • Civic Visionaries and Entrepreneurs growing our company and moving • Bounded -but -Open Geography people up when people leave so fast. • Commitment to Inclusion There’s a more collaborative culture in • Long Term- Agenda Phoenix. To me it seems like there’s a lot of potential there that is not being Critical Mass tapped right now.” Successful innovation districts are driven by innovators, creatives and entrepreneurs—a high concentration of these Kasper Jensen, DoubleDutch Chief individuals is key. These are the people who recognize Technology Officer opportunity, mobilize resources and create value.

Source: Phoenix Business Journal, A critical mass will be most effective in a dense and walkable Aug. 31, 2017 setting, because density fosters formal and informal encounters on a regular basis.

7 Mixture of Industries Innovation districts offer a place where the people driving the innovation economy can cluster, interact and thrive. More specifically, it’s a place where universities, research institutes and companies connect and cross -pollinate with startups, Core Spotlight: business incubators and accelerators—across all industries. ASU VISIONING AND VALUES Tightly -Networked Ecosystem The ecosystem formed by the people who make up an innovation district is one of the most important components In the summer of 2017, Arizona to its success. That ecosystem must be an environment finely State University began hosting public tuned to support innovators, creatives and entrepreneurs at visioning and values meetings with all stages connect with the resources and people they need to the community to gather feedback move quickly to generate new ideas, grow their businesses, and about the future build out of 7.3 compete globally. acres on the Phoenix Biomedical Civic Visionaries and Entrepreneurs Campus. The goal was to solicit input on priorities for the design and use Innovation districts demand buy -in and support not only from of future buildings and public spaces, civic leaders—elected officials and government employees—but and eventually present a draft plan from business leaders across the entrepreneurial spectrum. back to the community. Bounded -but -Open Geography Boundaries spur collective action and nurture economic ASU anticipates research activities growth in an intense way: They encourage government to grow at 2.5 times the growth of entities, real estate developers, business leaders, universities, on-campus enrollment, and research and foundations to coordinate policies and investments in a expenditures should reach $815 million focused place. by FY2025. That growth demands new space with varied facilities, which is At the same time, districts should be flexible about helping to inform the physical needs of embracing companies and assets outside its boundaries. the PBC expansion. And leaders should feel comfortable adjusting boundaries as innovation spreads. Community representatives provided feedback to ASU about the design of the campus, emphasizing place-making features like shade, greenspace, and seating in addition to elements to improve walkability and bikeability through the campus. Plans We have a ton of support from the City also call for mixed-use buildings, and of Phoenix, a ton of support from other the public spoke up about the need businesses—even other local coworking for more retail space in the area, too. “ spaces. We’re right at the heart of it. I wouldn’t want to be anywhere else.” The process serves as an example of engaging the community in creating a KYLE FRAZEY, MARKETPLACE ONE, functional space for more innovation. “THE DEPARTMENT” COWORKING SPACE

8 Commitment to Inclusion STARTING OFF STRONG: Cities must remain committed to cultivating DISTRICT ANCHORS a diverse, inclusive community where all Phoenix’s steering committee assessed residents and employees have the opportunity downtown’s biggest employers and tenants, and to succeed. This can be addressed through three key organizations emerged as anchors. economic development strategies, policies, The Phoenix Biomedical Campus, Arizona State community programming, or investments in University Downtown, and Galvanize will serve as affordable projects. the innovation district’s anchors. Long Term- Agenda Phoenix Biomedical Campus Innovation districts don’t succeed overnight. It The first anchor is the city-owned Phoenix can take decades to lay the foundation and build Biomedical Campus (PBC), a 30 -acre urban a strong ecosystem. It takes collective action medical and bioscience campus, planned for more by stakeholders inside and outside the district. than 6 -million square feet of biomedical related- Once well developed, an innovation district will research, academic and clinical facilities. Since it remain successful by evolving with technology opened in 2005, the campus has grown to be a and global economic trends, and by building on its magnet for top tier- research and talent—a mix of strengths over time to nurture new generations of researchers, doctors, innovators, educations and researchers, entrepreneurs and startups. thought leaders. The key is to maintain a steady set of guiding A 2015 study commissioned by the University of principles against which to measure possible Arizona found the economic impact of the PBC new actions. “How does this idea or project or exceeds $1.3 billion annually, and has directly or development enhance our innovation ecosystem indirectly created more than 9,400 jobs. At full and support the vision of our district?”

Biomedical Sciences Partnership Building on the Phoenix Biomedical Campus

9 build out, the Campus is anticipated to exceed $2.1 Since 2012, the Health Sciences Education billion in annual economic impact. Building, the University of Arizona Cancer Center at St. Joseph’s, and the Biomedical Sciences The first building on the campus became home to Partnership Building all joined the PBC. These Translational Genomics Research Institute (TGen), facilities are home to classroom space, wet and a nonprofit organization focused on early-stage dry labs, advanced technology and collaborative diagnostics and treatments. The relatively new student workspaces, research facilities, patient field of translational genomics applies medical care facilities and clinics. ASU, U of A, and advances born from the Human Genome Project Northern Arizona University all have students to the development of diagnostics, prognostics on the PBC in the fields of nursing, nutrition, and therapies for cancer, neurological disorders, pharmacy and medicine. The U of A also enrolls diabetes and other complex diseases. TGen’s more than 200 students in its Eller College of penchant for innovation has expanded beyond Management Executive MBA program, located on its walls—the nonprofit has produced 19 spinoff site. companies in related fields. This year, ASU plans to break ground on the first Immediately following TGen’s opening, the building on its 7.3 acres of the PBC—critical vacant Phoenix Union Bioscience High School was built space on the north side of the campus that will and began to offer a full, integrated curriculum bring more than a million additional square feet of with an emphasis on STEM education. A few research, classroom and lab space at full build out. blocks south, in the historic buildings of the former Phoenix Union High School Campus, the Tucson - Arizona State University – Downtown based University of Arizona opened its second Campus College of Medicine. Shortly after, the Arizona The second anchor is ASU Downtown. Following Biomedical Collaborative—shared by ASU and U the campus’s opening in 2006, a wave of of A—was built to host biomedical informatics, colleges began relocating their facilities and computing, engineering and medical students. students downtown including Public Service

Walter Cronkite School of Journalism and Mass Communication at Arizona State University

10 and Community Solutions, Nursing and Health In December 2017, ASU and the City of Phoenix Innovation, Health Solutions, Letters and announced plans to relocate ASU’s Thunderbird Sciences, Mary Lou Fulton Teachers College and School of Global Management to the downtown the Barrett Honors College—many offering both campus. Construction of the new building, which undergraduate and graduate degree programs. will be located adjacent to the Beus Center for Law and Society, is expected to be completed in time In 2008, the nationally recognized Walter Cronkite for classes in January 2021. School of Journalism and Mass Communication made its move into a new state -of the- -art facility Galvanize Phoenix on the downtown campus. It’s home to both The third anchor for the district is technology - Cronkite News and local PBS affiliate KAET. education company Galvanize. As city leaders In 2013, ASU and the City of Phoenix partnered started to see a spike in interest in downtown again to build a six -story, $129 million new home office space from tech companies and startups, for the Sandra Day O’Connor College of Law and they renewed their focus on recruiting the Beus Center for Law and Society. The Center entrepreneur resources to the area. At the top of opened in the fall of 2016, bringing law students the list was Galvanize—which offered not just tools into downtown—just steps away from the legal, for startups, but coding classes, coworking and political and economic center of the city and closer venture capital. to alumni, experts and prospective employers. The Denver -based company was founded in ASU’s move into downtown Phoenix brought with 2012 under the mission to fuse industry and it not just classroom facilities and student housing. education under the same roof. What resulted is It was also the catalyst for a number of on - a campus that offers entrepreneurs and students campus and nearby restaurants, a fitness facility in a shared space to work and learn. Galvanize partnership with the YMCA, and Civic Space Park, offers web development and data science home to one of the city’s most iconic public art courses, office suites and open coworking space sculptures. for entrepreneurs, as well as event space for

11 Galvanize Phoenix in the Warehouse District community building and programming. There are west and 7th Street to the east. The Warehouse eight Galvanize campuses across the U.S. serving district overlaps some of this area. It is also more than 1,800 members. bounded to the west and east by the 7s, and reaches as far north as Jefferson Street and as far A concentrated recruitment effort helped bring south as Buckeye Road. Galvanize to the Warehouse District in 2016. Phoenix’s Industrial Development Authority The Downtown Phoenix Redevelopment area supported Galvanize’s move into a 125,000 -square - includes a considerable amount of residential foot old produce distribution warehouse. The neighborhoods, the Roosevelt Row Arts District, and city’s Community and Economic Development an Enhanced Municipal Services District. (See map.) Department utilized workforce development funds to support Galvanize graduates who secure jobs The steering committee focused on the densest in the Phoenix area. The campus takes up a little concentration of relevant economic activity and more than half of the space, with the remainder found that the majority was taking place within left unfinished for a future tech-focused tenant. the Enhanced Municipal Services District and the eastern side of the Warehouse District. More Today, there are more than 100 companies co - specifically: an area bounded by Garfield Street located on the Galvanize Phoenix campus, and to the north, Grant Street to the south, 2nd the facility is active with startup programming Avenue to the west and 7th Street to the east. almost daily. Located adjacent to home -grown This boundary leaves out the arts district, which startup WebPT and ASU’s Herberger Institute has an established and distinct character, some for Design and the Arts at Grant Street Studios, residential neighborhoods, and the county and Galvanize solidified the Warehouse District’s place municipal government activity that primarily in Phoenix’s emerging innovation hub. takes place in the west side of downtown. Though not included, these adjacent areas significantly THE DISTRICT BOUNDARIES influence activity within the innovation district.

In addition to identifying anchor institutions, the The innovation district’s boundaries were steering committee studied two existing bounded strategically drawn to include the Phoenix areas in central Phoenix: the Downtown Phoenix Biomedical Campus, including 7.3 acres of Redevelopment Area and the Warehouse District. undeveloped campus land, ASU’s downtown The first is bounded roughly to the north by campus, and Galvanize. The light rail also runs McDowell Road and to the south by the railroad through the heart of this area, with three stops. tracks or Lincoln Street; and by 7th Avenue to the

2nd Avenue Central Avenue 7th Street 1st Avenue 1st

N Street 3rd

Garﬁeld Street

Fillmore Street

Van Buren Street

Washington Street

Jeerson Street

TALKING STICK RESORT ARENA

CHASE FIELD

Buchanan Street

Lincoln Street

Grant Street

Hadley Street

13 14 Phoenix’s Tech Scene is Growing – in an Old Warehouse District

Jon Swartz, USA Today | May 20, 2017

…The rise of the established companies in for job advancement. But Warehouse District, like the financial and health care Stanton and other city officials the mythological phoenix, began industries are ramping up, point to Phoenix’s expanding to take shape a few years ago and pockets of tech workers population, business-friendly with the passage in 2015 of in the region have migrated climate and comparatively a 35-year, light rail expansion downtown, where they prefer inexpensive office space. plan through the central spine to work and play. The affordable of Phoenix. It connected the cost of living has helped too, After years of growing out neglected south side of town drawing workers here from more into suburban sprawl, Phoenix to downtown and, equally expensive cities. — the nation’s 13th-largest important, local campuses for metropolitan area, with 4 million Arizona State University and Of course, competing for people, according to the U.S. University of Arizona. talent with the likes of the San Census Bureau — is growing Francisco Bay Area, New York, up, with the construction of At the same time, residential Chicago, Boston and other top- high-rises and other buildings construction (5,000 apartment tier cities isn’t easy — each is a downtown. And owners of tech units over the next three years) firmly established mecca of tech companies are flocking to it… and commercial development talent, brimming with venture picked up, tech hires by capital riches and opportunities

WHAT’S IN A NAME? PHX CORE Similar to the trend in other districts, the name is descriptive of its current place. The “downtown During a marketing and branding strategy session core” is an informal name for the Enhanced led by R&R Partners, the steering committee Municipal Services District in downtown Phoenix, was tasked with officially naming the innovation which is the area from Filmore Street to the district. Innovation districts in other cities are railroad tracks, 3rd Avenue to 7th Street. The area often acronyms, or named for historic places or overlaps most of the innovation district study area, their physical location. Members of the committee though the committee includes additional blocks felt strongly the area warranted a name more north and south to include the Biomedical Campus descriptive than “Phoenix Innovation District.” and the Warehouse District. Often residents and employees refer to this central area of downtown They ultimately recommended the name PHX casually as the core, with a lower case “c.” Core. The word “core” itself carries significance: A central and often foundational part; a basic, essential, or enduring part.

15 Section 4: Findings - What We Learned Employees SECTION 4: #1 About PHX Core SECTION 4: #2 by Industry SECTION 4: #3 Anchor RESIDENTS AND EMPLOYEES Employment in PHX Core19 is 24 times more dense than ARIZONA STATE UNIVERSITY 11,804 employment in the city of Phoenix overall. BusinessesAnchor Businesses College of Nursing & Health Innovation 1,797 (companies with 500+ employees) The total number of employees in PHX Core is 23,905, as Companies with 500+ employees of 2016. There are 49.1 employees per acre in PHX Core Walter Cronkite School of Journalism and Mass Communication 1,415 compared to only 2.1 employees per acre across the city of Employees College of Health Solutions 4,130* JP MORGAN Phoenix. CHASE 23 College of Public Service & Community Solutions The number of employees within a one -mile radius of ADVANCED BUSINESS SERVICES 3,679 1,906 downtown Phoenix (measured from Central Avenue8 and HOSPITALITYTOURISMRECREATION WELLS Sandra Day O’Connor College of Law 841 FARGO Washington Street) is nearly 65,000—about8 two and a half MEDIAPUBLISHINGENTERTAINMENT times greater than the number within the8 boundaries of College of Integrative Sciences and Arts 3,535* 1,635 CONSUMER SVCS PHX Core. When drawing boundaries,9 9 the City and steering ARIZONA STATE EDUCATION Mary Lou Fulton Teachers College 3,075* UNIVERSITY committee deliberately chose not to include the majority 1,347 of government buildings in the west of downtown, which GOVERNMENT Herberger Institute for Design and the Arts - Grant Street Studios 67 the one-mile figure includes. That additional workforce THE ARIZONA FINANCIAL surrounding PHX Core is a strength of the district’s location. REPUBLIC 1,069 UNIVERSITY OF ARIZONA 626 The residential population in PHX Core and the PINNACLE WEST CAPTIAL 1,020 immediate surrounding area is set to grow significantly. Eller College of Management 145 CORPORATION Multifamily housing construction is on the rise within College of Medicine - Phoenix 336 UNITEDHEALTH 841 PHX Core, but it’s growing even faster in the immediate GROUP surrounding area, especially to the north.SECTION More than 800 5 College of Pharmacy 23 units are under construction in PHX Core with an additional Zuckerman College of Public Health 82 COUNTY OF 698 2,100 planned through 2019. Just outside PHX Core in MARICOPA Midtown, 3,500 units are under constructionPHX with 4,800Core College of Nursing 40 686 planned through 2019. Many of those unitsFramework are located on or FREEPORT - near the light rail line, providing easy access to jobs in PHX MCMORAN NORTHERN ARIZONA UNIVERSITY 364 CORPORATION Core. Those units are in addition to the more than 1,600 units 600 recently completed with new tenants. College of Health and Human Services

UBER 510 The growing numberENHANCE of residential options and the BUILD density of employmentPLACE opportunities, bars and EXPERTISE ARIZONA SUMMIT LAW SCHOOL 386 restaurants makes PHX Core an attractive place to live BANK OF AMERICA and work. TOTAL NUMBER OF HIGHER -ED STUDENTS 13,180 There are 138 total bars, restaurants and coffee shops located Source: Maricopa Association of Governments, 2016 Employer Database within the boundaries of the PHX Core.

CULTIVATE FACILITATE DIVERSITY INTERACTION

SUPPORT ENTREPRENEURSHIP EDUCATION AND INDUSTRY services and government. Relevant degree offerings downtown include law, masters of In 2000, there were virtually zero higher business, and public service. This is true for media education students in downtown Phoenix, and publishing jobs and journalism students today there are more than 13,000. as well. This correlation is beneficial for both The rapid growth in students in downtown employers and students, as it creates natural Phoenix and its effects have transformed the opportunities for internships and workforce area—the influx of young people helped attract pipeline growth. a record number of new restaurants, retailers The enrollment chart below does not yet and housing options. As the universities and City continue to invest in additional higher education include the ASU Thunderbird School of Global offerings in PHX Core, the projected number of Management, which announced in December students continues to rise. 2017 it would relocate to the downtown ASU campus. Thunderbird’s current enrollment is 225 There is an important relationship between graduate and 120 undergraduate students in the top industries by employment and the full time- programs, and 228 students in working degree programs offered in PHX Core. professionalEmployees programs. SECTION 4: #1 The top three industriesSECTION by number 4: of #2employees SECTION 4: #3 in PHX Core are financial, advanced business by Industry Anchor Top 7 Industries by Employment5 19 ARIZONA STATE UNIVERSITY 11,804 Businesses Employees College of Nursing & Health Innovation 1,797 Companies with 500+ employees by Industry Walter Cronkite School of Journalism and Mass Communication 1,415 College of Health Solutions 4,130* JP MORGAN CHASE 23 ADVANCED BUSINESS SERVICES College of Public Service & Community Solutions 3,679

1,906 8 HOSPITALITYTOURISMRECREATION WELLS Sandra Day O’Connor College of Law 841 FARGO 8 MEDIAPUBLISHINGENTERTAINMENT 8 College of Integrative Sciences and Arts 3,535* 1,635 CONSUMER SVCS 9 9 ARIZONA STATE EDUCATION Mary Lou Fulton Teachers College 3,075* UNIVERSITY 1,347 GOVERNMENT Herberger Institute for Design and the Arts - Grant Street Studios 67 THE ARIZONA FINANCIAL REPUBLIC 1,069 UNIVERSITY OF ARIZONA 626

PINNACLE WEST CAPTIAL 1,020 Eller College of Management 145 CORPORATION College of Medicine - Phoenix 336 UNITEDHEALTH 841 When we’re successful with this innovation district, when we’re successful GROUP SECTION 5 College of Pharmacy 23 making this the center of the innovative economy in Arizona, that’s what’s Zuckerman College of Public Health 82 COUNTY OF 698 going to be the core of our economic future. Make no mistake, the substance MARICOPA PHX Core of“ it—what these creatives are doing in business and innovation—it really College of Nursing 40 686 Framework FREEPORT represents the best of the future of the Phoenix economy.” MCMORRAN NORTHERN ARIZONA UNIVERSITY 364 CORPORATION PHOENIX MAYOR GREG STANTON 600 College of Health and Human Services

UBER 510 ENHANCE BUILD PLACE EXPERTISE ARIZONA SUMMIT LAW SCHOOL 386 17 BANK OF AMERICA TOTAL NUMBER OF HIGHER -ED STUDENTS 13,180

CULTIVATE FACILITATE DIVERSITY INTERACTION

SUPPORT ENTREPRENEURSHIP Employees SECTION 4: #1 SECTION 4: #2 by Industry SECTION 4: #3

6 Anchor Education/Degree Offerings Students 19 ARIZONA STATE UNIVERSITY 11,804 Businesses College of Nursing & Health Innovation 1,797 Companies with 500+ employees Walter Cronkite School of Journalism and Mass Communication 1,415

College of Health Solutions 4,130* JP MORGAN CHASE 23 ADVANCED BUSINESS SERVICES College of Public Service & Community Solutions 3,679

PINNACLE WEST CAPTIAL 1,020 Eller College of Management 145 CORPORATION College of Medicine - Phoenix 336 UNITEDHEALTH 841 GROUP SECTION 5 College of Pharmacy 23

Zuckerman College of Public Health 82 COUNTY OF 698 MARICOPA PHX Core College of Nursing 40 686 Framework FREEPORT MCMORRAN NORTHERN ARIZONA UNIVERSITY 364 CORPORATION 600 College of Health and Human Services

UBER 510 ENHANCE BUILD PLACE EXPERTISE ARIZONA SUMMIT LAW SCHOOL 386

BANK OF AMERICA TOTAL NUMBER OF HIGHER -ED STUDENTS 13,180

(*) Include majors from all four Metropolitan ASU Campuses

There are 85+ technology -focused companies and startup firms in PHX Core.

CULTIVATE FACILITATE This is a figure the City will continue to monitor as an indicator of growth in DIVERSITY INTERACTION technology sectors, an important industry segment in a successful innovation district. The Community and Economic Development Department is also actively recruiting technology focused- companies to PHX Core.

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18 GENERAL DEMOGRAPHICS QUALITY OF PLACE PHX Core attracts a highly educated PHX Core continues to become more walkable. workforce; there is a concentration of bachelor and graduate degree holders Pedestrian counts at major intersections in PHX working in the area that far exceeds Core show that foot traffic is on the rise. The City education attainment levels citywide. and its partner organization, Downtown Phoenix, Inc., are committed to increasing walkability in Sixty percent of PHX Core employees have a PHX Core through streetscape improvements, bachelor or graduate degree. By comparison, 28 additional trees and shade infrastructure, percent of residents in the city of Phoenix and 30 and requiring ground-floor activation for new percent of residents in the greater metro have a construction. At the end of 2017, more than bachelor or graduate degree. This concentration 1,300 pedestrians walked between Jefferson and shows that the employment opportunities are Washington Streets along First Avenue each hour. strong for advanced degree holders. Commuting to PHX Core is convenient: Nearly PHX Core residents are younger than the overall half of employees commute just 5 24- minutes city population, and its workforce is older. to work each way. More than half of the people living in PHX Core are between the ages of 15 and 34—only 28 percent of The greater Phoenix metropolitan area is the 12th the metro population fall in that same age range. In largest in the country and home to more than 4.5 contrast, of the employees in the area, 50 percent million people—and many economic assets are are over the age of 45. The older workforce can spread throughout the region. But as residential be attributed to the largest industries in the development in and around PHX Core continues area—advanced business services, financial and to rise, many people are choosing to live in the government. As more young firms and startups central city. This makes commute times short and move to PHX Core, this is a figure to monitor. convenient—just 5 24- minutes each way for 46 percent of PHX Core employees. The people in PHX Core are diverse. Valley residents will commute an hour one - One third- of both residents and employees way for quality jobs. are Hispanic. Thirty percent of residents and 10 percent of employees speak Spanish at home. The Twenty four- percent of PHX Core employees diverse makeup of PHX Core is one of its biggest commute more than 60 minutes each way. This strengths. Twelve percent of its residents are Black travel time- data shows that people are willing and nearly three percent are Native American. to come from all corners of the Valley to work in The City is committed to continue promoting and PHX Core, and that the high -quality jobs available preserving the ethnic diversity of the area. within the area are worth the lengthy commute.

I really see the opportunity in the Warehouse District. It’s like the backyard of downtown in a sense, and it’s been neglected for so many years. These buildings“ that were built in 1914…just don’t exist anywhere else. Because of the proximity to downtown, because of the proximity to the airport—just five minutes away—you’ve got the light rail that runs right through it…all of those coming together and the walkability of it just makes total sense.”

BRAD JANNENGA, WebPT / CHASSI

19 PHX Core is the center of the region’s major There is room for more growth and new arts, culture and sporting events. tenants in PHX Core.

In addition to being the city’s densest employment There is 9.2 million square feet of office space and center, downtown is also the center of 1.1 million square feet of industrial space located entertainment and events. More than 6 million within PHX Core (with a vacancy rate of 17 percent people visit downtown Phoenix annually. PHX Core and 15 percent, respectively). is home to the Herberger Theater and Symphony Light rail is a critical public transit option for Hall—two venues that help attract more than 1.1 residents and employees in PHX Core, and million people to concerts and shows in downtown they are taking advantage of it. Phoenix each year. There are three light rail stops within PHX Core. Nearly 3 million people attend sporting events There are approximately 7,000 average weekday each year at Chase Field and Talking Stick Resort boardings within PHX Core, and approximately Arena, home to the Arizona Diamondbacks, the 10,000 average weekday boardings within Phoenix Suns, Phoenix Mercury and Arizona Downtown overall. Rattlers. There is a notable drop in weekend boardings for most downtown stops, suggesting that ridership The Phoenix Convention Center offers is mainly made up of workforce commuters. conventioneers 880,000 square feet of meeting The exceptions are the stops at 3rd Street and and exhibit space, and was center for fan activities Jefferson and 3rd Street and Washington, which for the Superbowl, College Football Championship, serve the sporting venues—both of which see more and the NCAA Final Four back-to-back. In fiscal boardings on the weekends than week days. This year 2016 2017,- the Convention Center hosted is an indicator that residents and visitors are using nearly 600 events, reaching a total attendance of public transportation to access events downtown nearly 1 million. on the weekends.

20 Valley Metro Light Rail at 3rd Street and Jefferson Street Employees SECTION 4: #1 SECTION 4: #2 SECTION 4: #3 Strategy 4: Attract or createby workforce Industry development initiatives Section 5: • Encourage and support more entrepreneur - driven learning programs including business Anchor ARIZONA STATE UNIVERSITY 11,804 Strategies for 19 accelerators, incubators, coding classes, etc. Businesses • Partner with universities on talent development College of Nursing & Health Innovation 1,797 efforts in new -cluster industries. This could Companies with 500+ employeesSuccess include formal degree programs, or even Walter Cronkite School of Journalism and Mass Communication 1,415 supplemental programs. College of Health Solutions 4,130* JP MORGAN • Encourage creative uses of public spaces, such CHASE 23 BUILD EXPERTISE as patios or pocket parks, to getADVANCED people outside.BUSINESS SERVICES College of Public Service & Community Solutions 3,679 1,906 • Work to address gaps8 in the talentHOSPITALITYTOURISMRECREATION pipeline, WELLSThe following recommendations outline goals to Sandra Day O’Connor College of Law 841 especially for high8 tech- jobs. FARGOguide PHX Core to success. The goals are organized MEDIAPUBLISHINGENTERTAINMENT 8 College of Integrative Sciences and Arts 3,535* into five categories,1,635 which form a framework within CONSUMER SVCS Strategy9 9 5: Market and promote ARIZONAwhich STATE transformative results are possible. successes EDUCATION Mary Lou Fulton Teachers College 3,075* UNIVERSITY 1,347 Strategy 1: Increase critical mass • Collect information from universityGOVERNMENT partners Herberger Institute for Design and the Arts - Grant Street Studios 67 about research and development dollars, THE ARIZONA• Monitor and measure the employment density FINANCIAL patents, spinoffs and other innovative indicators. REPUBLICfigure and recruit1,069 businesses to PHX Core to These are units other comparable innovation UNIVERSITY OF ARIZONA 626 increase it. PINNACLE districts are using to measure success. WEST CAPTIAL 1,020 Eller College of Management 145 CORPORATIONStrategy 2: Establish additional clusters • Track that information and promote it to relevant • New industry clusters may emerge by focusing industry partners. Encourage or help facilitate College of Medicine - Phoenix 336 UNITEDHEALTHon where there is existing841 talent strength—or growth. College of Pharmacy 23 GROUP disciplines in PHX Core that have a high number SECTION 5 of students already. For example, there is a high Zuckerman College of Public Health 82 698 COUNTY numberOF of bioscience and medical students in MARICOPA PHX Core, but this industry is not a top employer. PHX Core College of Nursing 40 There is a high number686 of integrated arts Framework FREEPORT MCMORRANstudents, but arts or multi -media industries are NORTHERN ARIZONA UNIVERSITY 364 CORPORATION not top employers.600 College of Health and Human Services Strategy 3: Increase the UBER focus on bioscience510 ENHANCE BUILD PLACE EXPERTISE ARIZONA SUMMIT LAW SCHOOL 386 • Leverage the already strong presence of the BANK OFbiosciences on the Phoenix Biomedical Campus AMERICA to recruit more related firms and companies. TOTAL NUMBER OF HIGHER -ED STUDENTS 13,180

• Ensure that commercial space is available for those firms to locate on or near the PBC.

• Convene bioscience and medical stakeholder groups across organizations to encourage more collaboration and mindful planning for future CULTIVATE FACILITATE development and programming. DIVERSITY INTERACTION

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21 FACILITATE INTERACTION

Core Spotlight: Strategy 1: Increase connectivity 111 W. MONROE • Focus on streetscape improvements that will significantly increase the pedestrian experience, especially in areas where BUILDING there are clear walkability challenges.

• Focus on streets that offer north -south connectivity within In downtown Phoenix, several office PHX Core, including 1st and 3rd Streets. Bring innovation - towers have figured out the formula based elements to these streets and ensure a pedestrian and for catering to creatives by investing bike friendly route. in inviting and engaging ground-floor activity and transforming outdated • Encourage creative uses of public spaces to get people office floor plates into spaces that outside such as patios or pocket parks. can accommodate the hip, open structure of many tech companies. Strategy 2: Mix industries The success of that investment is • Encourage more dual degree programs or collaboration clear at 111 W. Monroe. between degree programs. The University of Arizona has both its medical school and MBA program on the same In October 2016, Scottsdale-based campus. These degree programs could crossover to produce Integrate made the move to 111’s innovations in medicine and business. The co location- of the penthouse, joining other high profile ASU law school and the future site of the ASU Thunderbird tech companies including Gainsight School of Global Management present a similar opportunity. and Allbound in the tower. • Support and encourage business and startup co -location. This “Integrate is growing at a rapid pace may be in a member -based coworking space, or just in the and making the move to tech-centric same building. As many buildings downtown undergo major Downtown Phoenix was a natural renovations, these opportunities are ample. fit for us. The Monroe Building Strategy 3: Strengthen engagement across offers a unique environment that community groups aligns with our company culture and entrepreneurial spirit, while • Work with existing community and neighborhood groups providing a solid foundation for us to promote the ideas and messages of PHX Core—this to keep growing.” Jeremy Bloom, should create a more unified and central message about the Integrate CEO advantages of the district. • Continue to leverage community groups as focus groups for “We still believe ‘today’s Downtown new ideas and to identify opportunities to advance PHX Core. Phoenix’ is the smartest bet in the region; the combination of new • Connect incoming tenants—both commercial and residential— infrastructure, world class education, with existing organizations. and cool local flavor is compelling, especially in light of our competitive Strategy 4: Include community perspectives in pricing posture. 111 W. Monroe is public processes well-positioned to be part of this • Seek opportunities to collect community feedback and story...” Tim O’Neil, 111 W. Monroe perspectives. Partner • Lean on PHX Core residents and employees for testimonials Source: AZ Big Media when engaging potential locates. • Encourage private partners to engage the public as well through community feedback sessions or open houses.

22 What surprised me is how accessible people Core Spotlight: are—even City officials. To have the mayor call ARIZONA “you when you’re not expecting it—I think that’s CENTER a unique aspect of Phoenix, that everyone is here to help everyone else succeed. And that

Construction is underway on a $25 access is unlike any other city.” million renovation to bring one of KRISTA SHEPHERD, CANARY AND GOULD EVANS downtown Phoenix’s oldest retail complexes up to date.

Arizona Center covers two city blocks and includes two office towers, a garden, movie theater, and a number SUPPORT ENTREPRENEURSHIP of retail and restaurants—many of which have been vacant for extended Strategy 1: Attract or create new resources periods of time. • Identify ways for the city to support programming for The renovation, led by Parallel Capital high -growth startups and founders through public -private Partners and Angelo, Gordon and partnerships, direct investment, or strategic allocation of Co., includes improvements that will resources. This could include targeted workforce development modernize the center and address training. its current introverted design. The center’s façade on Third Street, Strategy 2: Attract national events and which was a solid, blank wall, will be conferences opened up to become more inviting for pedestrians and people passing • Leverage the growing hotel inventory and state of- the- art- through the area. Other changes convention center space in PHX Core by recruiting national will improve the sense of place events and conferences focused on startups, tech, investment including more shade and seating in and biosciences. the garden area. This kind of mindful design—which emphasizes place and • Work with organizations including Downtown Phoenix, Inc. encourages interaction—is critical to and Visit Phoenix to proactively recruit these events to PHX the goals of PHX Core Core.

This space is also important to the Strategy 3: Continue to strengthen #yesphx brand future of PHX Core. In addition • Continue to find ways to promote successes in and outside to attracting new businesses and the market to increase this brand awareness. The City of retailers, the property will also soon Phoenix strongly supports the #yesphx brand that serves as a be home to a $100 million, 31-story unifying banner for the regional startup ecosystem. residential tower. The project will bring an additional 350 residential • Work with leaders of the #yesphx movement to identify units to the center and much needed opportunities for city leaders to support startup companies density to PHX Core. and entrepreneurs, or simply increase visibility and awareness of city resources.

23 ENHANCE PLACE mass, but clusters may emerge in other areas around PHX Core in downtown, midtown, or Strategy 1: Plan for tenant improvement even south Phoenix.

• Find creative ways to help mitigate the costs Strategy 3: Integrate this vision of tenant improvement, or make it easier to with existing plans improve outdated office spaces. Much of the • Look for ways to align or combine existing plans existing office space inventory in PHX Core is such as the Downtown Form Code, Tree and built out to meet the needs of law firms—or is a Shade Master Plan, and Bicycle Master Plan with historic building that may not be built out at all. the goals of the PHX Core. • Phoenix already has a strong adaptive reuse Strategy 4: Improve use of existing policy to help businesses renovating historic public spaces and parks spaces for new use. Revisiting this policy to look for new opportunities to help businesses may be • Inventory all city owned or operated properties helpful. and identify ones that may be ripe for more innovative use. Strategy 2: Embrace a bounded - but -open geography • Encourage more programming of public or open spaces—including privately owned open • Rather than focus on whether a company or spaces and parks. PHX Core is bustling during asset is within the bounds of the district, focus the workday, but could use additional activity to instead on its commitment to the vision and draw crowds at night. goals of the district. Strategy 5: Improve use of • Be open to including and celebrating newcomers mega -facilities that may be nearby but outside the designated boundary. For example, Tuft and Needle is • Evaluate new use opportunities on the ground - located on Grand Avenue, outside PHX Core, but level or exterior of facilities including the its contributions to the startup community have Phoenix Convention Center, Chase Field, and been immense, and the company’s commitment Talking Stick Resort Arena to encourage more to driving innovation makes them a leader in the pedestrian or public engagement. ecosystem. • Explore opportunities for programming these • Follow development closely and be open to venues with more innovative uses (in addition to changing or expanding the district bounds in their intended use). time. One strategy for now is building critical

“The Space Between” temporary pocket park

24 CULTIVATE DIVERSITY facilities include public space that encourages interaction between students and the public, Strategy 1: Leverage existing particularly PHX Core employees. City resources • Encourage higher education students to live in • Work with the Equal Opportunity Department PHX Core. Ensure that there are housing options to identify opportunities for partnerships or in PHX Core and downtown that are attractive new programming through existing diversity, and marketed to students—especially post - inclusion and equity efforts. graduate students. • Engage PHX Core on current equity initiatives, These strategies are not exhaustive. They should, including the South Central Light Rail Expansion however, provide a template for maximizing which is engaging diverse communities in potential and strategic growth within PHX Core. construction plans. Strategy 2: Create or support equity The research on innovation districts is still new and inclusion focused programming and constantly evolving. Phoenix leaders are committed to continuing to learn from other cities • Look for existing programming or initiatives that and adapting best practices as they emerge. As can work within PHX Core to promote equity Phoenix’s economy continues to diversify, Stanton and inclusion. This may include educational and his colleagues on the Council remain focused programming. on creating opportunities in innovation based- • Support conferences or events that promote sectors. By increasing regional exports, expanding diversity. mass transit, and investing in higher education, Strategy 3: Multiply opportunities for Phoenix leaders are laying the groundwork for a promoting university diversity sustainable economy that works for everyone.

• Create opportunities to partner with ASU The vision for this innovation district is shared Thunderbird on international events that would by many in Phoenix’s business, development, be open and available to broader audiences. creative, and education communities and should serve as a guide for future tenants, visionaries, and • In the capital plans for ASU Thunderbird and ASU agents of change. biomedical campus buildings, ensure that the

University of Arizona College of Medicine Phoenix Commencement

25 Acknowledgements

THE STEERING COMMITTEE

Local founders, representatives of anchor institutions, business leaders and key stake holders provided city staff guidance and direction on the formation of the district. Members of the Innovation District Steering Committee were appointed by Stanton and the City Council to serve for one year.

Phoenix’s steering committee’s first tasks included recommending to the Council the boundaries of the Innovation District, marketing and branding direction, and a strategic vision for growth. The following individuals were appointed to lead the effort:

Brad Jannenga (Chair), Co-Founder, WebPT; Founder and CEO, Chassi

Jeff Moloznik, (Vice Chair), Vice President, Red Development

David Adame, President and CEO, Chicanos Por La Causa

Nick Arambula, Chief Operating Officer, Tuft & Needle

Dr. Holly Batsell, Principal, Phoenix Union Bioscience High School

David Allen, Vice President, Tech Launch Arizona, University of Arizona

Brandon Clark, Co-Founder, StartupAZ Foundation, CRADL

Kristin Gubser, Assistant Director of Development, Gateway Community College

Lawrence Mandes, Co-Founder and President, Galvanize

Jackie Roberts, General Manager and Sales Director, DoubleDutch

Krista Shepherd, Principal, Canary and Gould Evans

Mark Stratz, Broker, Transwestern

Steven J. Tepper, Dean, Herberger Institute for Design and the Arts, Arizona State University

Oye Waddell, Executive Director, Hustle PHX

Brad Woodman, Phoenix Office Director, SmithGroupJRR

26 Acknowledgements

ADDITIONAL PARTNERS

The City worked with two local agencies, R&R Partners and Kitchen Sink Studios, to create the marketing and branding resources to support the committee’s recommendations. R&R Partners developed a brand strategy and the website, and Kitchen Sink Studios produced a short film about PHX Core.

Their work, including an interactive map of companies and assets located in PHX Core, can be viewed at phxcore.com.

The steering committee leaned on the experiences and expertise of many organizations and companies in the PHX Core community who hosted the monthly public meetings including Galvanize, the University of Arizona, Red Development, Gould Evans, Downtown Phoenix, Inc., ASU Grant Street Studios, DoubleDutch, and Phoenix Union Bioscience High School.

Special thanks is owed to: Phoenix City Councilmembers Kate Gallego and Daniel Valenzuela; from Mayor Stanton’s office, Senior Policy Advisor Nicole Pasteur; from the City’s Community and Economic Development Department, Economic Development Research Specialist Joseph MacEwan; and Mary Jo Waits, who served as an advisor to the steering committee and contributed to this report.

“City Lights Movie Nights” at CityScape 1 Katz, Bruce, and Julie Wagner. The Rise of Innovation Districts: A New Geography of Innovation in America. Metropolitan Policy Program at Brookings, 2014, www.brookings.edu/essay/rise -of -innovation -districts/.

2 Wagner, Julie. Advancing a New Wave of Urban Competitiveness: The Role of Mayors in the Rise of Innovation Districts. The Anne T. and Robert M. Bass Initiative on Innovation and Placemaking, 2017.

3 Stanton, Greg, “State of the City Address.” 19 April 2016, Sheraton Grand Phoenix.

4 Maricopa Association of Governments, 2016 Employer Database

5 Maricopa Association of Governments, 2016 Employer Database

6 ASU Fall 2016 Enrollment Numbers; Institute of Education Sciences: National Center for Education Statistics College Navigator Fall 2016, Enrollment Numbers; NAU Fall 2016 Factbook Enrollment Numbers

7 Maricopa County Travel Reduction Program 2016; US Census Bureau, ACS 2012 2016;- Maricopa Association of Governments

8 Maricopa County Travel Reduction Program 2016; US Census Bureau, ACS 2012 2016;- Maricopa Association of Governments

9 Maricopa County Travel Reduction Program 2016; US Census Bureau, ACS 2011 2015;- Maricopa Association of Governments

10 Maricopa County Travel Reduction Program 2016; US Census Bureau, ACS 2012 2016;- Maricopa Association of Governments

11 Downtown Phoenix, Inc., 2017

12 Maricopa County Travel Reduction Program 2016; US Census Bureau, ACS 2012 2016;- Maricopa Association of Governments

13 Downtown Phoenix Inc, 2017

14 CoStar Analytics, 2017

15 Valley Metro, FY17 Ridership Report

PHOTOGRAPHY CREDITS: Caleb Alvarado Photography (Gould Evans 521 studio, p. 1); Lauren Potter (“The Space Between” temporary pocket park, p. 23); Sun Czar Belous (University of Arizona College of Medicine Phoenix Commencement, p. 24 and University of Arizona College of Medicine student, back cover); Craig Smith (Civic Space Park, back cover).

NOTE: Maricopa County Travel Reduction Program data and analysis is based on a small sample size (approximately 9,000 employees), drawn from PHX Core employers with 50 or more employees. JOIN US

phxcore.com 602 262- -5040 [email protected]